Goldman Sachs sees 75 bps ECB rate hike in September

World+Biz

Reuters
31 August, 2022, 08:05 pm
Last modified: 31 August, 2022, 08:11 pm
FILE PHOTO: The Goldman Sachs company logo is seen in the company's space on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., April 17, 2018. REUTERS/Brendan McDermid/File Photo

Goldman Sachs expects the European Central Bank to raise interest rates by 75 basis points at its policy meeting next week after data on Wednesday showed euro zone inflation hitting a new record high.

"Given today's stronger-than-expected inflation data -together with hawkish commentary and upside risks to near-term growth - we now expect the Governing Council to hike by 75bp at the September meeting," the US bank said in a note on Wednesday.

The bank's economists also raised where they expect rates to peak, to 1.75% in February 2023, from 1.50% previously.

Markets have ramped up bets on such a move since last Friday, when some sources told Reuters policymakers could discuss a 75 basis-point move, and hawkish policymaker commentary at the Jackson Hole symposium. 

Other banks including Nordea and Danske Bank have also said they expect a 75 basis-point hike.

Related Topics

Goldman Sachs / ECB / rate hike

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